A choice of law clause or proper law clause is a term of a contract in which the parties specify that any dispute arising under the contract shall be determined in accordance with the law of a particular jurisdiction.
As people and transactions now more frequently cross subnational, national and international borders both physically and electronically, it becomes necessary to consider which law will be applied in the event of a dispute. Should the laws be the same, the question will be academic. But, if the laws are sufficiently different that the judgment will change depending on which law the court applies, the issue of the choice of law becomes highly significant.
- ^ "choice of law clause", Webster's New World Law Dictionary (Hoboken, New Jersey: Wiley Publishing, Inc.), 2006
- Lea Brilmayer and Jack Goldsmith, Conflicts of Law: Cases and Materials, Fifth Edition (2002), p. 280-303.